Reckitt Benckiser, the consumer goods group behind Nurofen painkillers and
Finish dishwasher tablets, has bulked up in India with the 32.6bn rupee
(£454m) takeover of Paras Pharmaceuticals.

The FTSE 100 company has acquired the ointments and personal care business from a consortium of Actis, the emerging-markets-focused private equity house, Sequoia Capital, the US buy-out group, and Paras founder Girish Patel.

The deal will hand Reckitt a number of leading Indian health care brands including D'Cold, a flu remedy, and Krak, a skin treatment for cracked heels.

"It creates a material health care business in India, one of the most promising health care markets in the world," said Bart Becht, Reckitt's chief executive. "We believe the Paras business has not only extremely good growth potential... we also expect to realise material synergies as a result of the integration."

The deal – which sent Reckitt's shares up 64p to £35.73 – comes as the company attempts to increase its presence in the developing world. Paras generated sales of 4bn rupees in the year to the end of March, following a mid-teens growth rate over the previous four years, and an operating profit of 1bn rupees, Reckitt said.

"The market positions should provide a strong platform for medium-term expansion in India and we note that Paras itself had ambitions to distribute to additional markets in Asia and the Middle East," he said.

Reckitt was advised by JP Morgan, while Morgan Stanley acted for the Paras shareholders.